Vast Resources, an AIM-listed mining company with a portfolio of assets in Zimbabwe and Romania, said on Tuesday it had pulled out of a $4 million deal to buy the Ghaghoo diamond mine in Botswana from Gem Diamonds.
The London-listed company did not give any reasons for pulling out of the deal.
Gem Diamonds entered into a binding share purchase agreement with Okwa Diamonds, a joint venture between Vast Resources and Botswana Diamonds, in August for the sale of the mine, which has been under care and maintenance since 2017.
The deal was expected to be finalized in the first quarter of 2022.
Vast Resources said in a notice to shareholders that it informed Botswana Diamonds and Gem Diamonds of its decision not to acquire Ghaghoo.
A separate statement from Gem Diamonds stated that Botswana Diamonds had confirmed their commitment to finalizing the transaction as soon as possible in order to complete the sale of the mine.
“The parties have therefore agreed to extend the Longstop Date under the Sale Agreement from 31 January 2022 to 31 March 2022 to allow Botswana Diamonds to secure an alternative financing partner which will replace Vast Resources,” Gem Diamonds said.
In 2014, Ghaghoo was estimated to have a resource of 79.3 million tonnes with an average grade of 19.5 carats per hundred tonnes and a diamond value of $242 per carat.